Celsius, the bankruptcy-to-bankrupt crypto lender that this week paid off its $223 million loan on Blockchain protocol Maker and saved $450 million in collateral, is now pursuing a similar strategy with two other major decentralized finance (DeFi) platforms. aave and compound may be called with.
Celsius Starts Paying Its Debts To Aave And Compound
Data from DeFi data analytics firm Zapper shows that a crypto wallet identified by blockchain information firm Nansen as linked to Celsius reduced its debt to Aave and Compound from $258 million to $235 million on Friday.
If Celsius pays off this debt in full, the company could theoretically recover a substantial amount of its collateral. The company had shown $950 million in assets as collateral in return for the debt it received from the said DeFi protocols.
These moves appear to be part of the company’s strategy to restructure its debt to DeFi protocols and reclaim high-value collateral that has been locked up to close the alleged hole in its balance sheet.
In addition, people who like to monitor the movements of companies from Blockchain data search platforms will closely monitor the transactions between the company in a liquidity crisis and its decentralized finance (DeFi) platforms.
in distress cryptocurrency company Celsius recently paid off its debt to the decentralized finance app Maker and was able to get back the assets it had locked on the platform as collateral. It remains unclear whether these steps of the company, which is on the verge of bankruptcy, will save itself.
*Not investment advice.